Rent the Runway gives back gains after Q4 report that tops views
Shares of Rent the Runway Inc. fell more than 6% in the extended session Wednesday, giving back some of its strong gains from the regular session, after the fashion rental company reported a narrower fourth-quarter loss and revenue that topped Wall Street expectations as well as above-expectation revenue guidance for the year. Rent the Runway said it lost $39.3 million, or 62 cents a share, in the quarter, compared with a loss of $38.8 million, or $3.48 a share, in the fourth quarter of 2020. Revenue rose 91% to $64.1 million, the company said. FactSet consensus called for a loss of 71 cents a share on sales of $63 million. Rent the Runway said it ended fiscal 2021 with 115,240 active subscribers, a 110% year-over-year increase. The company guided for fiscal year 2022 revenue between $295 million and $305 million. The analysts surveyed by FactSet expect revenue around $203 million for the year. Guidance reflects “our ongoing confidence in the business as we continue to grow significantly with an eye towards profitability,” co-founder and Chief Executive Jennifer Hyman said in a statement. “We look forward to capitalizing on one of the strongest potential macro environments for rental we’ve seen in recent years, with an outsized pipeline of weddings and social occasions in 2022, return to work and a resurgence of general social activity.” Shares of Rent the Runway ended the regular trading day up 6.7%.
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